A History of Empirical Literature on the Relationship Between Trade and Growth

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The purpose of this paper is to review the empirical literature on the relationship between international trade and economic growth. Case studies as well as econometrical works point to a positive impact of trade on growth, although they have shortcomings. Case studies are difficult to generalize and methods of econometrical works can be criticized. Industry and firm-level research also show that openness contributes to growth owing to its positive impact on productivity. The survey finally shows that the scope of the impact of trade reform on growth also depends on complementary policies.

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